Have you seen the homes that were being built on Florida’s coasts. They were billed as “luxury homes from $750,000 up” for the most part. Those with ‘no job, no income’ weren’t getting into these.
Plus, after Katrina, most flood insurance providers pulled out of Florida, with only the state-owned one remaining. And that one offers flood insurance at astronomical rates. Considering that banks will not offer a loan to anyone unless they get flood insurance in Florida... it’s choked off the demand for housing right there.
Across the highway from me is a sea of new suburbs that never cracked $150,000 even at the height of the boom, many of which are now in foreclosure. The only people still in their homes are snowbirds, military families and well heeled refugees who fled Hugo Chavez.